How Much Is A Gold Bar Worth?
While not as popular as getting bitcoins, buying gold is a wise and valuable investment. This leads us to the question, “How much is a gold bar worth?”
Broadly speaking, gold bars come in several sizes and weights, ultimately affecting their worth. For instance, a gram of gold can be sold for as low as $77. Meanwhile, a hefty ten-ounce gold bar can set you back around $20,300.
Stick around to learn more about how much a gold bar is worth and why it could be a worthwhile future investment.
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About Gold Bars
Before digging into gold prices, it’s worth getting an overview of what gold bars are. In simple terms, gold bars are manufactured from refined gold. Nevertheless, it’s unlikely that you’ll find fully pure gold bars.
In most cases, they carry some percentage of impurity. The minimum standard quality of gold, according to the Gold Individual Retirement Account (IRA), needs to be around 99.5% fine gold.
That being said, gold bars are used as a reference for the international gold market. This organization is responsible for covering live gold prices, specifically for companies and people investing in gold bars.
Now, the live prices covered by the international gold market are called “spot prices.” They’ve been named spot prices because it’s the gold price you purchase on the spot. Apart from that, multiple companies buy and sell gold bars, some of which may offer higher prices than others.
This could be due to several factors, such as the gold’s purity levels. Some of the most common gold bar suppliers in the globe include PAMP Suisse, Perth Mint, and Johnson Matthey.
Types of Gold Bars
With the market for gold bars growing, the forms of these precious metal bars have diversified into a couple of types.
Mint
Mint gold bars are relatively refined compared to cast bars. The manufacturing process produces the bar using numerous thin layers of gold. Once the layers are complete, the piece is fed into a machine to be carefully cut into a specified shape.
Afterward, the minting machines engrave the blank gold bars with either reverse or observe etches.
Cast
Cast gold bar production entails a more traditional process. The gold bars are made from molten gold poured into a bar mold. Once cooled, the gold bar is then engraved with standard markings such as weight, serial number, and mint logo.
For this reason, you may expect cast gold bars to be slightly less costly than mint options. Nevertheless, the gold market remains volatile, and the opposite can also be true.
Gold Bar Prices
Gold bars are typically divided based on their weight classification. These weights are mostly standard. They can include 1 gram, 100 grams, or 10 ounces.
One Gram Gold Bar Price
If you’re new to the gold game, then starting with a gram’s worth of a gold bar is an ideal choice. These are one of the lightest standard options available. They’re currently sold for a reasonable $55.
Meanwhile, premium gold prices may offer a gram of gold bar for around $77 from notable gold suppliers like PAMP Suisse.
One Ounce Gold Bar Price
An ounce of gold bar is one of the most popular choices among gold investors. In terms of ounces, gold isn’t similarly measured to other objects. In other words, an ounce of paper is not similarly weighed to an ounce of a gold bar.
This is because gold is measured in a different kind of ounce measurement known as a troy ounce. Troy ounces are used to mostly weigh precious metals like silver and platinum. That being said, one regular ounce is equivalent to 0.9 troy ounces.
Overall, a one-troy-ounce gold bar is currently worth around $1,710 to $1,720. Now, this is the spot price. Premium prices given to private investors could run higher than that. For example, a one-ounce gold bar from Perth Mint or Credit Suisse could run for about $2,050.
100 Gram Gold Bar Price
Investors may go for the 100-gram gold bar option to expect a return for their investment rather than keeping it for storage. That being said, a 100-gram gold bar is currently sold for about $5,500 to $5,900. Contrastingly, premium 100-gram gold bar prices can reach up to $6,500.
10-Ounce Gold Bar Price
Like the one-gold bar, a 10-ounce option is also a commonly bought investment compared to other weights. This type of gold bar is particularly popular among corporate entities and government organizations due to its high value.
A 10-ounce gold bar’s spot price can fetch up to $17,000. Apart from that, you can find higher premium prices for this gold bar that can go as high as $20,000 from reputable gold companies such as Perth Mint.
1,000 Gram Gold Bar Price
If you’ve ever seen an action heist movie, then you may have seen these large-sized bars in a bank’s volt or some sort of safe. A 1,000-gram gold bar is one of the priciest gold bar options on the list.
These kinds of gold bars are particularly reserved for highly experienced precious metals investors. Their years of expertise in the industry will allow them to benefit the most from this hefty investment.
The 35.15-ounce gold bar’s price can reach approximately $54,000, in terms of its spot price. Nonetheless, premium prices may go for about $65,000. Aside from that, the more bars purchased, the more likely you’ll receive a discounted rate for the large sum of precious metals.
Other Gold Bar Sizes
Whether you’re new to the gold industry or want to look for more options regarding sizes, gold bars come in other smaller sizes. Some of which include 2.5, 5, 10, and 20 grams.
The smaller sizes sold provide a doable entryway for beginners to start their gold investment process.
The spot prices for all the mentioned sizes are:
Why Buy Gold Bars?
Gold is a solid derivative that multiple investors fall back on due to its reliability compared to other forms of investment. That being said, here’s why you may want to consider gold bars as your next purchase.
Lesser Premiums Placed
If you’re new to the precious metals industry, you may be wondering, “What makes gold bars so different from other forms of gold?” Well, other shapes of gold such as coins, ingots, or even jewelry, tend to cost higher due to more premiums placed.
Premiums in the gold industry are the added price compared to spot prices. This additional amount can come due to several factors such as production costs. For instance, Company A may sell its gold coin for $1,100, but Company B is selling it for a lesser $1,050.
This $50 difference could be that Company A uses more costly means of production. In other cases, Company B may have a higher supply of gold and less demand compared to Company A. Essentially, this is what drives up premiums.
Apart from having fewer premiums, gold bars are also comparatively easier to sell in the market, making them a better investment choice.
It Offers Reliability
Unlike digital currencies, gold holds stronger stability in terms of its price and value. To clarify, it’s less likely to see gold falling in value. Meanwhile, stocks are increasingly more volatile and may not provide you with as much return as gold bars would.
In addition to this, gold is the only internationally derivative that can’t degrade, particularly in the long run. Its price may become variable, but that’s only in the short term.
It Provides Investors with a Safety Net
The global financial sphere is usually met with ups and downs, and the future is often unpredictable. Inflation could just be around the corner and what better way to provide a safety net for yourself than invest in gold bars?
The good news is that gold is a global currency, which allows it to become more stable. This is why gold bars are commonly used to hedge against inflation.
Branches Out Your Investment
Rather than placing all your eggs in one basket, buying gold provides you with a necessary change in investment.
As a general rule of thumb, you don’t want to rely on one form of investment. Overall, more diversity equals more risk distribution.
What Impacts the Price of Gold Bars?
In an increasingly volatile financial market, investors are often unsure when is the best time to invest in gold bars. Luckily, by monitoring some indicators such as the stock market, you may be able to catch a low price.
The Stock Market
Gold prices and the stock market have an inverse relationship. To clarify, when gold prices increase, the stock market falls and vice versa. For this reason, the stock market could be a helpful indicator when determining the rise or fall of gold bar prices.
To understand this relation, you may want to look at a situation when the stock market falls. In this scenario, people are looking for stable investments and that’s where gold comes in. With the increase in gold’s demand, its price will tend to increase as well.
Supply and Demand Factor
In basic economic explanation, if the supply of gold decreases, while its demand increases, you’ll likely notice a price hike.
Meanwhile, if gold bars are in high supply while not a lot of people are buying, then a price decrease is likely. This is when you’ll likely want to invest in some gold bars.
This supply and demand factor applies to gold production. Accessing gold mines is becoming increasingly difficult as they become deeper. The cost of extracting gold, in turn, increases, which then increases the overall price of production.
The higher the production cost, the lesser the product’s supply, which may lead to heightened demand and higher gold prices in the end.
US Dollar Value
Like the stock market, the US dollar and gold values are inversely related. For this reason, when the US dollar’s value decreases, such as in cases of inflation, gold prices and value increase.
Accordingly, the demand for gold also increases since more can be bought when the dollar hits a low point.
Besides that, gold is dollar-denominated, which means that the metal has an underlying value in the US currency.
Central Bank Reserves
Another noteworthy driver of the price of gold bars comes from the central bank reserves. The central bank accumulates both paper and gold reserves. If the gold reserves overtake paper ones, then gold prices can increase.
To Conclude
How much is a gold bar worth? Simply put, gold bars come in diverse sizes and formats that directly affect their price. For instance, a mint one-ounce gold bar can cost around $2,050. Meanwhile, a 10-gram gold bar costs a more reasonable $550.
Whether you’re a beginner or an advanced investor, gold bars are a reputable option. They provide stability, reliability, impressive returns, and wealth protection from possible financial fallouts.